Chart Industries, Inc. (NASDAQ:GTLS)

CAPS Rating: 5 out of 5

The Company is an independent global manufacturer of highly engineered equipment used in the production, storage and end-use of hydrocarbon and industrial gases.


Player Avatar TMF1000 (99.73) Submitted: 6/14/2012 1:35:50 PM : Outperform Start Price: $64.19 GTLS Score: -85.66

GTLS was entered on my caps at $64.19. The PE ratio presently is 37.98. The U.S has to transition itself away from dependence on foreign oil. Natural gas could be the replacement fuel.

If we switched the long haul trucks to nat gas, it would be similar to taking forty cars off the road for each truck rolling along the highways. These trucks use about 20,000 gallons of diesel every year. It would be easier to create the refueling stations for them.

There are about 240 million cars in the U.S. Trying to create enough refueling stations for them and storage would be difficult. But it could take place someday.

Presently about 15% of the countries garbage trucks run on nat gas. In many of these instances, the nat gas is taken from the dumps where it is generated by rotting garbage. You probably seen the flames that burn this off. Waste Management is working to take that gas, build their own stations and fuel their trucks and anyone else that can use it.

Just getting the trucks fueled would save billions for the U.S. so it would help.

Presently there are only about 900 natural gas stations and only half are open to the public. By comparison there are about 160,000 gasoline stations in the U.S.

There are about 110,000 Nat Gas vehicles on the road opposed to 240 million cars. I remember when the idea of the Internet was being bantered about, it said it wouldn't be a useful thing in my lifetime. That was very depressing to me, since they explained and I knew exactly what it would mean for communication and research. But in a decade, they accomplished what they believed would take many decades and well within my lifetime.

There are many people that do not want us to run on nat gas. Chemical companies use nat gas and they don't want trucks to use it because it would mean higher prices for them, so they are lobbying against it. I am sure oil companies don't want it either. I have no doubt they could lay the infrastructure in a few short years if the country got behind it. But will they?

Getting the trucks on nat gas would lay the groudwork. It wouldn't be too long after that before more public stations would be built. Just getting the trucks on nat gas would help.

They are not trading at a cheap valuation. I placed it on CAPs as multi-decade idea. But analysts do expect them to do very well in the next five years. As more refueling stations are built, there will be need for more storage tanks that GTLS supplies. It is my hope that someday all vehicles will run on natural gas someday, The U.S has enough nat gas to last 200 years.

Chart Industries (GTLS)
February 28, 2012 4Q:2012 earnings’ highlights:
** 4Q revenues were $219.635 million up from $158.838 million
** Fiscal 2011 Revenues were $794.585 million up from $555.455 million
** TTM revenues were $794.585 million or $26.44 per share
** Earnings were $0.28 down from $0.33 last year
** Fiscal 2011 earnings were $1.47 up from $0.69
** Diluted share count 30.044 million
** Cash flow for the year was $59.278 million up from $21.6 million
** TTM cash flow was $59.278 million or $1.97
** Trading range between February 28, 2012 and April 26, 2012 was $65.57 to $76.36: PE ratio range was 44.61 to 51.95: Cash flow yield range was 2.6% to 3%: PS ratio range was 2.48 to 2.89
** Special note: The stock price rose $4.62 to close at $70 the day of the report: The report was announced before the opening.

April 26, 2012 1Q:2012 earnings’ highlights:
** Revenues were $216.106 million up from $162.941 million
** TTM revenues were $847.75 million or $28.20 per share
** Earnings were $0.47 up from $0.25
** TTM earnings were $1.69 per share
** Diluted share count 30.061 million
** Cash flow was negative ($15.5 million) up from negative ($25.104 million)
** TTM cash flow was $68.88 million or $2.29 per share
** Trading range between April 26, 2012 and the present was $59.29 to $79.29: PE ratio range was 35.08 to 46.92: Cash flow yield range was 2.9% to 3.9%
** Special Note: The stock price rose $7.31 the day of the report to close at $76.36 on April 26, 2012. The report was announced before the markets opened.

Member Avatar Hesse (85.96) Submitted: 11/1/2012 11:39:09 AM
Recs: 1

Hello Tom.

I totally agree with you. However, I sold my GTLS in Feb and May this year between $63..65.
The reason was insider selling in Feb and an EV/EBITDA=17. This was around 5 when I bought in May 2010.
As I have no insights where the peak earnings could be in the next 3 years, I prefer to wait until the next recession.
I'm pretty confident this stock gets knocked down again...


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